subject: What Will Day Trading Offer...online Profit System [print this page] Is it Day Trading Or Something Else? Is it Day Trading Or Something Else?
There is this misconception about day trading that need to be cleared up. Ive always thought of day trading as trades opened and closed in the same day. This may seem very obvious to most of us, however, there are so-called experts who lump all online traders into the bag of day trading. For the sophisticated observer it is plain to see the obvious differences. A day trader rides the rush of the asset, while a swing trader diagnosis the trends and holds onto it as long as the momentum last. So where does that leave you? I dont know if the term day trading ever existed before we had access to the internet. My definition is that of a person who might be trading at the speed of light. You might laugh, but this is the life of a day trader. They do not care about fundamentals or even for that matter what the company does. They are riding the trend, up or down it doesnt matter, as long as the asset is behaving the way they have projected it would. Day traders dont care what markets they are in, be it stocks, options, currencies, or futures, they get in and out with a fast profit. A transaction may last a few minutes, an hour or so, but never more than that day. They also must adhere to a set of strict rules and regulations, including maintaining an account that doesnt fall less than twenty-five thousand. For complete details on all the rules, please refer to the SEC web site.
So now you can determine what type of a trader you are thinking of pursuing. Are you a real day trader, or perhaps, swing trading is more what you were intending to research? Swing traders can do a limited amount of intra day trades without incurring any penalties. A great way to determine which strategy is best suited to your needs, is to first decide if your plan is to pursue this on a full time basis. You cannot be a day trader part time. With the proper software you can swing trade while keeping your job or enjoying your retirement. Swing trading is traditionally considered a low risk venture, especially for those who trade the large cap stocks. But is there really such a thing as low risk in these volatile times? Some experts will tell you that swing trading only works in a stable market, where the prices dont fluctuate, but I feel that if you are properly trained you can make money no matter what the market is doing.
I think most regular folk always saw the market as a playground for the big cats. That was until the influx of trading companies to the internet. So how much investment capital should you have? To quote the investment companies disclosure, and Im paraphrasing; never invest more than you have to lose. It is like gambling, make no mistake about it. However instead of just rolling the dice, putting your chips all on lucky 7, or hopelessly watching the little pea spin around, you can learn what is the equivalent of counting cards. There are three basis fundamentals, I believe that every foundation for sound trading should be built upon. Knowledge Training Software
Knowledge Leads to Training
Training Leads to Knowledge
Let us assume that you have some knowledge or you wouldnt be researching the market. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerages technical data is too small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
It is No Longer a Simple Stock Tick
Candlestick Charting Will Light the Way to Profits
For those of you not yet familiar with candlestick charting, I will
try to give a brief but accurate explanation. The Chinese invented the market concept, and the Japanese perfected charting techniques with the use of the candlesticks. It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow every day. We know that the lower tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, so our candle has formed a tail and a wick. Is it starting to make a little sense to you? Can you see the advantage of knowing this information, for getting in and out, and setting a stop loss?
I dont profess to being an expert, but I do know of some. I obviously dont have the time to go into all the details now, but at my site
Market Mentalist you will find all you need to know about investing online. There is an abundance of up to date articles and product information on What Will Day Trading Offer...Online Profit System. There is also access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
